The initial climb by Uniswap (UNI) earlier in February appears to be evaporating. It’s been day after day of losses for the DEX, and there are signs that the bleeding will continue in the coming days. But how far can bears take the price action? Here are some highlights:
Uniswap (UNI) could crash to $5 before it finds its next leg up
The coin was trading at around $8.74, down by nearly 7% in 24 hours at press time.
The price action is within a crucial demand zone but so far bulls are staying off.
Data Source: Tradingview
Uniswap (UNI) – why a crash to $5 is likely?
As noted above, UNI has entered a crucial demand zone. Looking back at the chart, every time the token has entered the range of between $ $7.31 and $9, bulls have come in and bought in huge numbers. We are not seeing that right now.
In fact, even though at present UNI is trading at around $8.74, the bearish trend appears to be holding steady. We are watching to see if there will be any bullish activity in the coming days.
If indeed, UNI is able to generate demand and push back above $10, it could suggest more gains. But with sentiment in the market largely fearful, we don’t expect this to happen. Instead, UNI could slip below its demand zone and eventually settle at $5 in the coming days.
Is Uniswap (UNI) still a good investment?
The dip in crypto prices is a sign that perhaps this may not be as much of a smooth year as 2021. But even then, the long-term outlook on Uniswap (UNI) still remains very positive.
In fact, if indeed the coin drops to $5, get it. Even if you don’t end up holding for long, there is a chance the downward trend will reverse, and UNI will be back to double figures in no time.